WuXi PharmaTech
Encyclopedia
WuXi PharmaTech Inc. (Public, NYSE:WX) is a pharmaceutical, biotechnology
, and medical device
research and development
(R&D) outsourcing
company headquartered in Shanghai
, with operations in China
and the United States
. The company provides integrated laboratory and manufacturing services throughout the research and development process. WuXi acts as a contract researcher for nine out of ten of the world's largest pharmaceutical manufacturers.
from Columbia University
, was a founder at Pharmacopeia, Inc. of Princeton, New Jersey
, then returned to China to found WuXi PharmaTech.
WuXi PharmaTech is the product of the merger in early 2008 of WuXi PharmaTech Inc., a chemistry-based company founded in China in 2000, and AppTec Laboratory Services Inc., a Minnesota company founded in 2001 with expertise in medical-device and biologics testing.
Since April 2008, the name of WuXi's China operations, WuXi PharmaTech Co., Ltd., has been changed to WuXi AppTec Co., Ltd.; and the name of its U.S. operations, AppTec Laboratory Services, Inc., changed to WuXi AppTec, Inc.
In April 2010, Charles River Laboratories announced an agreement to acquire WuXi. The deal was later rejected by Charles River shareholders, resulting in a $30 million breakup fee being paid to WuXi.
-based AppTec Laboratory Services in January 2008, for $151 million. It was the largest Chinese takeover of a U.S. firm since the Lenovo Group purchased the former IBM
personal computer division.
The company has two segments: laboratory services and manufacturing services. Laboratory services (largely under the WuXi AppTec name) represent discovery and development services for pharmaceuticals, development and testing services for biotherapeutics
and medical devices, and comprehensive toxicology
services. According to the 2011 Form 20-F
financial report from the company, the laboratory services segment generated 88% of the entire corporate revenues.
Manufacturing services are offered for advanced intermediates and active pharmaceutical ingredients (APIs); cell banking
services; and cGMP
manufacturing for cellular therapeutics and tissue-based products. In 2011, WuXi began manufacturing the hepatitis C
drug Telaprevir
for Vertex Pharmaceuticals
, which a Morgan Stanley
analyst noted sells "almost four times" Merck
's product Boceprevir
, which is one of the reasons WuXi raised guidance for the manufacturing business. Founder of Vertex, Joshua Boger, said of the WuXi subsidiary's Telaprevir manufacturing plant in China, "There was not a single corner cut. You can eat off the floor."
since August 9, 2007, and its American Depositary Shares trade under the symbol WX. The equity market capitalization
of WuXi was over $120 million in August 2011. Total net revenue in 2010 was $334 million, and gross profit was nearly $128 million, an increase of 17.8% from the previous year.
In August 2011, WuXi was reported as having the third-strongest relative performance gains in the Life Sciences Tools & Services industry.
Biotechnology
Biotechnology is a field of applied biology that involves the use of living organisms and bioprocesses in engineering, technology, medicine and other fields requiring bioproducts. Biotechnology also utilizes these products for manufacturing purpose...
, and medical device
Medical device
A medical device is a product which is used for medical purposes in patients, in diagnosis, therapy or surgery . Whereas medicinal products achieve their principal action by pharmacological, metabolic or immunological means. Medical devices act by other means like physical, mechanical, thermal,...
research and development
Research and development
The phrase research and development , according to the Organization for Economic Co-operation and Development, refers to "creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of...
(R&D) outsourcing
Outsourcing
Outsourcing is the process of contracting a business function to someone else.-Overview:The term outsourcing is used inconsistently but usually involves the contracting out of a business function - commonly one previously performed in-house - to an external provider...
company headquartered in Shanghai
Shanghai
Shanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...
, with operations in China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
and the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. The company provides integrated laboratory and manufacturing services throughout the research and development process. WuXi acts as a contract researcher for nine out of ten of the world's largest pharmaceutical manufacturers.
History
WuXi's founder, Dr. Ge Li, is known as a haigui (sea turtle), which is a pun on haiwaiguilai, meaning "returned from overseas". He earned his doctorate in organic chemistryOrganic chemistry
Organic chemistry is a subdiscipline within chemistry involving the scientific study of the structure, properties, composition, reactions, and preparation of carbon-based compounds, hydrocarbons, and their derivatives...
from Columbia University
Columbia University
Columbia University in the City of New York is a private, Ivy League university in Manhattan, New York City. Columbia is the oldest institution of higher learning in the state of New York, the fifth oldest in the United States, and one of the country's nine Colonial Colleges founded before the...
, was a founder at Pharmacopeia, Inc. of Princeton, New Jersey
Princeton, New Jersey
Princeton is a community located in Mercer County, New Jersey, United States. It is best known as the location of Princeton University, which has been sited in the community since 1756...
, then returned to China to found WuXi PharmaTech.
WuXi PharmaTech is the product of the merger in early 2008 of WuXi PharmaTech Inc., a chemistry-based company founded in China in 2000, and AppTec Laboratory Services Inc., a Minnesota company founded in 2001 with expertise in medical-device and biologics testing.
Since April 2008, the name of WuXi's China operations, WuXi PharmaTech Co., Ltd., has been changed to WuXi AppTec Co., Ltd.; and the name of its U.S. operations, AppTec Laboratory Services, Inc., changed to WuXi AppTec, Inc.
In April 2010, Charles River Laboratories announced an agreement to acquire WuXi. The deal was later rejected by Charles River shareholders, resulting in a $30 million breakup fee being paid to WuXi.
Company segments
The primary operating subsidiaries of WuXi PharmaTech are incorporated under the WuXi AppTec name, after WuXi purchased MinnesotaMinnesota
Minnesota is a U.S. state located in the Midwestern United States. The twelfth largest state of the U.S., it is the twenty-first most populous, with 5.3 million residents. Minnesota was carved out of the eastern half of the Minnesota Territory and admitted to the Union as the thirty-second state...
-based AppTec Laboratory Services in January 2008, for $151 million. It was the largest Chinese takeover of a U.S. firm since the Lenovo Group purchased the former IBM
IBM
International Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...
personal computer division.
The company has two segments: laboratory services and manufacturing services. Laboratory services (largely under the WuXi AppTec name) represent discovery and development services for pharmaceuticals, development and testing services for biotherapeutics
Biotherapy
Zootherapy is the use of living animals for medical treatment or as an adjunct to medical diagnosis.-Overview:Zootherapy is the use of living organisms to diagnose, treat or cure disease or disease symptoms...
and medical devices, and comprehensive toxicology
Toxicology
Toxicology is a branch of biology, chemistry, and medicine concerned with the study of the adverse effects of chemicals on living organisms...
services. According to the 2011 Form 20-F
Form 20-F
Form 20-F is an SEC filing submitted to the US Securities and Exchange Commission used by certain foreign private issuers to provide information.20-F, 20-F/AAnnual and transition report of foreign private issuers pursuant to sections 13 or 15...
financial report from the company, the laboratory services segment generated 88% of the entire corporate revenues.
Manufacturing services are offered for advanced intermediates and active pharmaceutical ingredients (APIs); cell banking
Cell bank
A cell bank is a facility that stores cells of specific genetic lines for the purpose of future use in a product or medicinal needs. They often contain expansive amounts of base cell material that can be utilized for various projects...
services; and cGMP
Good Manufacturing Practice
"Good manufacturing practice" or "GMP" are practices and the systems required to be adapted in pharmaceutical manufacturing, quality control, quality system covering the manufacture and testing of pharmaceuticals or drugs including active pharmaceutical ingredients, diagnostics, foods,...
manufacturing for cellular therapeutics and tissue-based products. In 2011, WuXi began manufacturing the hepatitis C
Hepatitis C
Hepatitis C is an infectious disease primarily affecting the liver, caused by the hepatitis C virus . The infection is often asymptomatic, but chronic infection can lead to scarring of the liver and ultimately to cirrhosis, which is generally apparent after many years...
drug Telaprevir
Telaprevir
Telaprevir , marketed as the brand name Incivek, is a pharmaceutical drug for the treatment of hepatitis C co-developed by Vertex and Johnson & Johnson. It is a member of a class of antiviral drugs known as protease inhibitors...
for Vertex Pharmaceuticals
Vertex Pharmaceuticals
Vertex Pharmaceuticals is a biotechnology company with activities spanning the length of the pharmaceutical product pipeline, from target identification through to clinical trials and marketing. Most of its activity has been in collaboration with much larger pharmaceutical firms, though some of its...
, which a Morgan Stanley
Morgan Stanley
Morgan Stanley is a global financial services firm headquartered in New York City serving a diversified group of corporations, governments, financial institutions, and individuals. Morgan Stanley also operates in 36 countries around the world, with over 600 offices and a workforce of over 60,000....
analyst noted sells "almost four times" Merck
Merck & Co.
Merck & Co., Inc. , also known as Merck Sharp & Dohme or MSD outside the United States and Canada, is one of the largest pharmaceutical companies in the world. The Merck headquarters is located in Whitehouse Station, New Jersey, an unincorporated area in Readington Township...
's product Boceprevir
Boceprevir
Boceprevir is a protease inhibitor used as a treatment for hepatitis C genotype 1. It binds to HCV nonstructural 3 active site....
, which is one of the reasons WuXi raised guidance for the manufacturing business. Founder of Vertex, Joshua Boger, said of the WuXi subsidiary's Telaprevir manufacturing plant in China, "There was not a single corner cut. You can eat off the floor."
Financials
WuXi PharmaTech has been listed on the New York Stock ExchangeNew York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
since August 9, 2007, and its American Depositary Shares trade under the symbol WX. The equity market capitalization
Market capitalization
Market capitalization is a measurement of the value of the ownership interest that shareholders hold in a business enterprise. It is equal to the share price times the number of shares outstanding of a publicly traded company...
of WuXi was over $120 million in August 2011. Total net revenue in 2010 was $334 million, and gross profit was nearly $128 million, an increase of 17.8% from the previous year.
In August 2011, WuXi was reported as having the third-strongest relative performance gains in the Life Sciences Tools & Services industry.